Kenya’s informal dairy sector accounts for nearly three-quarters of the country’s milk supply, playing a critical role in the economy and providing nutrition to millions of households affordably.
Despite its importance, the sector faces significant challenges, including limited support and the inability to adhere to best milk handling practices and regulatory requirements.
It also struggles to maintain consistent product quality and safety.
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="https://www.standardmedia.co.ke/article/2001444197/no-milk-on-shelves-how-to-fix-ailing-dairy-sector">However, the sector is< set to undergo a major transformation with the launch of the MoreMilk: More Milk for Lives and Livelihoods in Kenya Project.
The initiative is a collaborative effort between the Kenya Dairy Board (KDB) and the International Livestock Research Institute (ILRI). The four-year initiative focuses on improved milk safety standards, increased regulatory compliance and greater participation of informal businesses in regulated markets.
It will also empower consumers by increasing demand for safer, high-quality milk and strengthen gender equity by fostering collaboration between men and women in the informal sector.
Data shows 70 per cent of the dairy sector in Kenya is informal and includes small-scale dairy farmers, informal traders and vendors, who sell unpackaged milk directly to consumers. Women make up 50 per cent of the workforce in the sector.
Speaking at the project’s launch recently, KDB Managing Director Margaret Kibogy explained the Kenyan dairy industry is a vital economic activity, contributing to food security, income generation, employment creation and poverty reduction in our country.
="https://www.standardmedia.co.ke/editorial/article/2000002258/shout-out-dairy-farmers-success-story">Over the past few years<, said Ms Kibogy, the board has made significant efforts to transition the dairy industry from smallholder subsistence to a market-oriented model.
“This transformation has spurred increased investment in processing capacity, expanded chilling infrastructure to 2.6 billion litres per day and driven production growth from 3.9 billion litres in 2019 to the current 4.6 billion litres,” she said.
Kenya is among the top producers in the continent, with an annual production of 4.6 billion litres of milk valued at over Sh230 billion and a per capita consumption of 86.1 litres as of 2023.
The scheme aims to support the gradual transition of informal sector businesses into certified enterprises that provide safe and quality products.
Targeting small-scale dairy businesses in Nakuru, Nyandarua and Uasin Gishu counties, the initiative will address current challenges by improving milk handling practices and ensuring regulatory compliance while empowering vendors to thrive and enhancing consumer trust.
KDB, mandated to regulate and promote Kenya’s dairy sector, has made efforts to address these challenges.
In 2021, the board revised its dairy regulations to align with modern technology and market demands, simplifying and automating permit processes and replacing the KDB licence with a cost-free, compliance-based permit for small and medium dairy business operators.
These changes have significantly reduced barriers for small businesses to participate in the formal economy, paving the way for more inclusive and safer dairy markets.
Building on these regulatory advancements and the successes of the project’s first phase, which demonstrated that vendors can improve milk handling practises with the right support and capacity building, the project aims to support informal dairy vendors to improve the quality and safety of milk sold in the semi-regulated markets.
State Department of Livestock Development Secretary Administration Dr Joshua Chepchieng said the initiative aligns with Kenya’s Bottom-Up Economic Transformation Agenda, which identifies dairy as a priority value chain for development.
By focusing on the three counties, the project intends to create a business case that demonstrates the feasibility of scaling up to support the government’s objective of increasing milk sales through regulated markets from less than 20 per cent to 50 per cent.
="https://www.standardmedia.co.ke/business/business/article/2001404915/time-to-pay-attention-to-dairy-production-chain">“Our long-term vision
This threatens consumer’s health and hinders growth in the industry.
She explained: “Through capacity building, incentives for change and fostering an enabling environment, we are committed to supporting small and medium dairy enterprises. We believe that providing the necessary training, technology, and access to resources can uplift the entire dairy sector, ensuring healthier and safer milk for all Kenyans.”
ILRI Director General Appolinaire Djikeng said the collaboration with KDB is crucial to the success of this project.
“The partnership is pivotal in transforming Kenya’s informal dairy sector. By combining research and regulatory expertise, we are improving milk safety, enhancing livelihoods, and driving national food security and public health progress. Together, we are building a professionalized, sustainable industry that benefits millions,” said Mr Djikeng.
“Building on the success of the original MoreMilk project, and continuing to be grounded on sound research, this initiative aims to create a sustainable model that not only supports small businesses but also protects the health and well-being of Kenyan families,” added ILRI Principal Scientist and Project Lead Silvia Alonso.
The initiative is funded by ILRI, the Gates Foundation and the UK Foreign Commonwealth and Development Office (FCDO).
